It was observed that licensee has failed to consume the said imported quantity and declared closing balance as 20759 kilograms after the expiry of the utilization period of two years.

According to Rule-12 of SRO 327(I)/2008 dated 29.03.2008 the input goods acquired under these rules shall be utilized in the built-up and export of output goods within two years from the date of their import.

Non-export of imported materials resulted in the non-realization of government revenue. Therefore duty and taxes of the unconsumed quantity to be recovered from licensee M/s Carolina Fabrics (Pvt) Limited amounting to Rs4.48 million under the head of customs duty, regulatory duty, sales tax, withholding tax and others.